Colonial BancGroup: $606 million quarterly loss

Colonial BancGroup reported a massive quarterly loss and said today the investment group touted as the company's savior has bailed out, dimming prospects for the Montgomery-based bank's survival.

Colonial BancGroup reported bad news this afternoon.

The company said in a statement Florida-based mortgage wholesaler Taylor Bean & Whitaker won't be investing $300 million to shore up the bank's balance sheet.

Colonial reported a second-quarter loss of $606 million. The company has been losing money after uncollectible loans skyrocketed in Florida and Nevada, and said today there is doubt it can continue as going concern.

"The crickets are chirping when it comes to Colonial," said Tony Plath, a banking professor at the University of North Carolina Charlotte. "It is just a matter of waiting for regulators at the Federal Deposit Insurance Corp. to assist them in merging into another, healthier financial institution."